The White House announced, on Tuesday, the release of quantities of US oil reserves, in coordination with the release of reserves by China, India, Japan, South Korea and Britain.
The White House said it will make available up to 50 million barrels per day of strategic oil reserves, stressing that President Joe Biden is ready to take other steps regarding oil prices if necessary.
US West Texas crude fell $1.38, or 1.8 percent, to $75.37 a barrel, after the White House announced the withdrawal of oil reserves in coordination with several countries, as part of the United States’ attempt to limit the recent increase in crude prices.
Earlier Tuesday, US West Texas Intermediate crude futures were down 58 cents, or 0.8 percent, at $76.17 a barrel at 0423 GMT. Brent crude futures fell 42 cents, or 0.5 percent, to $79.28 a barrel.
US West Texas Intermediate crude futures were down 58 cents, or 0.8 percent, at $76.17 a barrel at 0423 GMT. Brent crude futures fell 42 cents, or 0.5 percent, to $79.28 a barrel.
On Tuesday, ANZ Bank said in a note: “Biden is said to be preparing to announce the release of oil from the Strategic Petroleum Reserve in coordination with several other countries.”
agency said,Bloomberg American This announcement will be “in coordination with many other countries” that consume oil such as India, Japan and South Korea.
The agency quoted well-informed sources as saying that the United States is studying the possibility of withdrawing between 30 million and 35 million barrels from the strategic reserve, provided that this is implemented over time.
The same sources added that the US administration is currently trying to coordinate simultaneous releases with foreign governments, including China and Japan.
Earlier, Biden called on China, India, South Korea and Japan to implement a coordinated withdrawal of oil reserves, at a time when gasoline prices in the United States were known to rise significantly.
The request came after the US government was unable to persuade the OPEC Plus alliance, led by Saudi Arabia and Russia, to increase production significantly, as the group that inflates major oil producers considers that there is no shortage of global supply of crude.
Oil prices began to decline slowly after hitting a seven-year high of $84 a barrel in mid-October.
Experts attribute the price hike to the recovery in global demand, as countries are steadily reopening their economies with the start of overcoming the Corona crisis.
This sent gasoline prices above $3.40 a gallon, an increase of nearly 60 percent compared to last year.
The United States began building the Strategic Petroleum Reserve in 1975, in the wake of the Arab oil embargo, which caused high gasoline prices and damaged the American economy.
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